Hundreds of billions of dollars -- that's what one top Senate Republican estimates could get paid out improperly by the Internal Revenue Service for premium subsidies called for under the Affordable Care Act. The prediction of anticipated tax fraud comes on the heels of a report this week from a Treasury Department inspector general. It's something we're sure Ohio readers are tracking.
Here's the issue. Under the ACA, the IRS is tasked with administering the tax credits that low- and medium-income individuals qualify for to help pay for the health insurance policies they get through the state-based health exchanges. The inspector general's report warns that existing IRS fraud detection systems may not be up to the task of spotting possible fraud schemes prior to tax return refunds being issued.